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This site is the inspiration of a former reporter/photographer for one of New England's largest daily newspapers and for various magazines. The intent is to direct readers to interesting political articles, and we urge you to visit the source sites. Any comments may be noted on site or directed to KarisChaf at gmail.

Friday, December 20, 2013

As we repoted consistently, at times on a daily basis, one of the more
memorable stories of the summer of 2013, was the rampant and furious depletion
of gold (both eligible and - mostly - registered) stored deep in the gold vault
of JPMorgan located under 1 Chase Manhattan Plaza, since
sold to a Chinese conglomerate (understandable considering China's
insatiable appetite for the yellow metal in physical, not paper form). This
culminated with some truly impressive multi-way vault rearrangements in which
the other 4 Comex members would provide gold to JPM on an almost daily basis
(see here
and here).
But while Chinese demand may explain the outflow of
physical, what is head-scratching is the just as furious scramble by JPM to
obtain gold in the past few weeks.

As persistent trackers of the CME's daily depository statistics update are
well aware, over the past week, JPM has been accumulating an impressive amount
of gold, and what is more curious, it has been precisely in increments of 64,300
ounces of eligible gold on a daily basis. Putting this scramble in context, two
months ago JPM had only 181K ounces of eliglble gold. And yet, just today, the
Comex announced that JPM's eliglble vault gold rose by almost that amount,
increasing by 125K to a reputable 1.2 million eligible ounces.
JPM's total eligible holdings, and especially the recent surge, are shown
below:
It bears pointing out that while eligible gold has been surging higher, JPM's
registered gold has once again contracted, and as of today, it closed at its
lowest ever: just 87K ounces of gold!
So with gold plunging to multi-year lows, is JPM just taking advantage of the
"blood on the streets" and becoming the helpful bidder of last (or first) resort
and replenishing its record low depleted inventory by taking advantage of below
production cost fire sales, or... is something else going on here?

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